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Excitement peaked when Coinbase, a cryptocurrency exchange, went public in April last year with a valuation of $85 billion. exit party for the industry. Bitcoin exceeded $ 60,000 for the first time.
Last summer, El Salvador announced that it would become the first country to classify Bitcoin as a legal tender alongside the US dollar. The country’s president has updated his Twitter profile picture to include laser eyes, a calling card for Bitcoin believers. The value of El Salvador’s $105 million investment in Bitcoin has been announced. halved It’s like the price has dropped.
Senators and mayors in the United States have started touting cryptocurrency as an industry. spent a lot of money lobbying. New York City Mayor Eric Adams, who was elected in November, said that he will receive his first three paychecks in Bitcoin. Wyoming Republican Senators Cynthia Lummis and New York Democrat Kirsten Gillibrand have proposed legislation that would create a regulatory framework for the industry and give more powers to the Commodity Futures Trading Commission, an agency where crypto companies openly exchange currency.
Throughout the frenzy, celebrities have fueled fears of kidnapping, whipping up their NFTs on talk shows, and talking about blockchain projects on social media. Super Cup this year featured Four ads for crypto companies, including Matt Damon, warned viewers that “fortune favors the brave”.
This brazen optimism is back this spring, as the stock market drops, inflation soars, and Layoffs hit the tech industry. Investors began to lose confidence in their crypto investments and shifted money to less risky assets. Several high-profile projects crashed during withdrawals. TerraForm Labs, which supposedly created the stablecoin TerraUSD and an experimental crypto bank Celsius, both crashed, wiping out billions in value and sending the broader market into a tailspin.
“The cyclical flow of funds raises questions about whether this entire ecosystem always needs outsiders to come in and maintain it,” said Mr Farrokhnia.
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